Basic rate taxpayers are able to earn up to £1,000 in savings interest per year, tax-free.
Higher rate taxpayers are eligible for a £500 tax-free allowance per year.
Additonal rate taxpayers are not be entitled to a Personal Savings Allowance.
The majority of savers won’t need to do a thing, as they’re not likely to earn more than the Personal Savings Allowance therefore most savers will receive tax free interest.
This is a big change for UK savers and we want our customers to be as well-informed as possible. So this part of our website is dedicated to helping you understand your new Personal Savings Allowance.